Calculating the payroll of someone who comes or leaves in the middle of the month no longer has to be a headache. With the function of Prorated Billing from Ontop, the system does the math for you based on the contract data, eliminating calculation errors and manual processes.
What is Prorated Billing?
When a contract begins or ends in the middle of a billing cycle, the worker is paid a payment proportional to their monthly compensation. Ontop calculates this amount automatically based on the Active Days of the contract.
The calculation formula
The system divides the monthly compensation by the total number of days in the current month and multiplies it by the days the contract was active.
(Monthly Compensation ÷ Total days of the month) × Active days = Prorated billing
Important note: The calculation is based on Active days , not just on "working days". This means that if the contract is in effect during weekends or holidays, those days are included in the account.
Practical example:
- Monthly compensation: $3,000
- Contract start date: January 5
- Payment date: January 12
- Active days: 8 days
- January days: 31 days
- Result: ($3,000 ÷ 31) × 8 = $774.19
How to activate Prorated Billing
You can activate this option directly during the payment flow:
Start your payment: Go to Payments and select Pay contractors , and a new flow starts (from contracts, workers or file).
Activate the switch: In the configuration modal, look for the toggle Prorated Billing and activate it.
Review the draft: In the paytable, you will see a label Prorated next to the names of the workers who have partial payment.
- Saved preference: The system will remember your choice. The next time you generate a payment, the switch will appear activated by default.
Manual settings
If you need to modify a specific amount, you can do so directly in the table:
- Effect: When manually editing a prorated value, the "Prorated" label will disappear.
- Logic: The system will understand that you want to apply a custom amount and will stop applying the automatic logic for that specific record.
Frequently asked questions
Does it work if I upload the payroll via mass file? Yes. The switch appears in all flow types. If active, Ontop will automatically detect partial cycles within your file.
What happens if the switch is disabled? The system will not perform any automatic calculations. You will need to manually enter exact amounts for each hire or mid-cycle termination.
Does the calculation use 30-day months or the calendar month? The actual number of days in the current month is used (28, 29, 30, or 31 days).